North American stocks are expected to rise at the open Monday as U.S. education lender Sallie Mae agreed to be bought for US$25 billion and as global banking giant Citigroup reported lower profit.

Sallie Mae agreed to be sold to two private-investment funds and banks J.P. Morgan Chase and Bank of America for US$25 billion, the companies said Monday.

Citigroup posted an 11% drop in first-quarter profit, as costs associated with a plan to cut 17,000 jobs hurt its bottom line. However, the banking behemoth’s revenue rose 15% to US$25.46 billion.

On the economic front, the U.S. Commerce Department reported that U.S. retail sales rose 0.7% in March, and demand for the prior month was revised much higher.

Here at home, the number of new motor vehicles sold fell a further 3.7% in February following a 4% decline in January, Statistics Canada reported today.

The Canadian dollar opened at US88.28¢, up 0.33 of a cent.

In M&A news, Algoma Steel is the target of a $1.85 billion takeover bid by a subsidiary of Indian-based Essar Global Ltd., worth $56 a share.

As well, Macquarrie Power & Infrastructure Income Fund made a bid to trump a rival offer and acquire Clean Power Income Fund for about $6.39 per unit, a price that values the target company at about $226 million.

In other earnings news, financial services firm Wachovia saw its first-quarter net income jump 33%, thanks to a lower tax rate, cost controls and recent acquisitions.

Drug maker Eli Lilly reported a 39% decline in first-quarter profit amid acquisition-related charges and costs from a settlement of product-liability litigation, though sales rose 14%.

Mattel said its first-quarter net income fell 60% from a year earlier, when results were boosted by a tax benefit. Sales at the world’s largest toy maker rose 19%.

Crude-oil prices rose 21¢ to US$66.54 a barrel.

Toronto stocks closed higher Friday, surging to a fresh record high, on the strength of risk of the resource sector, particularly a strong rise in the price of gold.

The S&P/TSX composite index gained 78.97 points, or 0.58%, to 13,578.62.

The benchmark index was up 1.1% on the week, and is up 5.2% so far this year.

The S&P/TSX Venture composite index rose 54.59, or 1.67%, to 3,319.40.

In New York, markets closed high on strong earnings reports and forecasts.

The Dow Jones industrial average closed up 59.17 points at 12,612.13, the Nasdaq composite index gained 11.62, or 0.47%, to 2,491.94, and the S&P500 lifted 5.05, or 0.35%, to 1,452.85.

Friday’s advance brought the Dow back to just 20 points below its Feb. 26 close and the Nasdaq to about 12 points from its finish on the day before the huge global equities sell-off.

For the week, the Dow gained 0.41%, the S&P 500 rose 0.63% and the Nasdaq climbed 0.83%.